MDU Resources Q4 revenue misses estimates

Overview

• Energy delivery firm's Q4 revenue missed analyst expectations

• Company acquired 49% stake in Badger Wind Farm

Outlook

• MDU Resources expects 2026 EPS between $0.93 and $1.00

• Company plans $560 mln capital investment in 2026

• MDU Resources anticipates long-term EPS growth of 6%–8%

Result Drivers

• ELECTRIC SEGMENT EXPENSES - Higher operation and maintenance expenses impacted electric utility earnings, partially offset by increased retail sales revenue

• RATE RELIEF - Natural gas distribution earnings increased primarily due to rate relief in Washington, Montana, South Dakota, and Wyoming

• PIPELINE EXPANSION - Pipeline segment earnings driven by expansion projects and demand for short-term firm capacity contracts

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the multiline utilities peer group is "buy"

• Wall Street's median 12-month price target for MDU Resources Group Inc is $22.50, about 7% above its February 4 closing price of $21.03

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nPn1MJcxta

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